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AT&T's (T) Q2 Earnings In Line, Revenues Miss Estimates

AT&T Inc. T reported relatively mixed second-quarter 2019 results as higher operating expenses led to year-over-year decline in earnings, despite healthy top-line growth driven by solid domestic wireless business and incremental contribution from WarnerMedia assets. The company expects to significantly reduce its debt burden in the second half of the year to achieve its year-end deleveraging goals, while focusing on the availability of nationwide commercial 5G coverage by early next year.

Net Income

On a GAAP basis, AT&T reported net income of $3,713 million or 51 cents per share compared with $5,132 million or 81 cents per share in the year-ago quarter. The slump in earnings despite higher revenues was primarily attributable to higher operating costs and merger and integration-related expenses.

Excluding non-recurring items, adjusted earnings for the quarter were 89 cents per share compared with 91 cents in the year-earlier quarter, and were in line with the Zacks Consensus Estimate.